DENVER (KDVR) — Before reversing the move, President Donald Trump’s threats of a double tariff on Canadian steel rattled the markets and local businesses.
The president’s latest move on tariffs on aluminum is not sitting well with businesses in Colorado and beyond.
“Unfortunately, tariffs are the president’s tool of choice. But I don’t think it’s a very effective tool in helping our economy. If anything, it might be hurting it,” said Karen Gerwitz, World Trade Center Denver CEO.
Uncertainty surrounding potential tariffs sent shockwaves through the stock market and among local businesses Tuesday.
“Staying on top of all those tweets and notices that we are getting from the media about how tariffs are doubling or tripling your cost. This is no way to plan a business. You know? Companies need stability, they need some surety to set prices and work with their counterparts,” said Gerwitz.
Gerwitz said Colorado businesses don’t know how to plan for this.
“This chaos of on again, off again tariffs is a disaster to try to run a global business right now. Companies are calling us around the clock to get support, to try to know how to mitigate and manage those risks. It’s even hard for us to advise sometimes because the news is changing so much,” she explained.
University of Denver Supply Chain Program Manager Jack Buffington said other countries are using tactics to spur manufacturing in their nations too…But he says a more tailored strategy could be more effective.
“The theory is right: it’s a long-term play. It should be a strategic play. But when it’s chaotic and it’s across the board and we don’t take into consideration the impact on exporting that we have a healthy exporting economy on exporting and energy, it could sometimes miss the mark,” Buffington said.
Gerwitz is doubtful.
“I don’t believe tariffs are going to bring back manufacturing. Let me just give an example: tariffs were imposed on steel and aluminum before in his administration. Not only did no new steel plants open up in the United States, actually some closed. So it’s not a method to bring back manufacturing, what will bring manufacturing is investment into our industries here, allowing them to build up our infrastructure to be able to attract more manufacturers,” Gerwitz said.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
